MsTabbyKats

Amend the return

You should have filed the innocent spouse with the return....it's too late now.

Now you know for next year.........

Well, maybe the new reporting rules will protect the preparers from clients like this one that want to avoid the law.

But Joel, as the preparer you always have the option to not do the return.

Personally, I like the new reporting rules...everything is spelled out for us.

I especially like it with the wash sales included....because it wasn't fun when someone bought/sold/bought/sold/bought all within a few months...and if you did it correctly you wasted a lot of time "counting days"....and the explaining "wash sales".

No one wants to hear that what they thought was their "great investing strategy" wasn't.

At least when it's written out in black and white the client cannot argue.

If they are Box A...the IRS gets all the information. Gone are the days where he could get away with not reporting the wash. You have to do it the correct way....and have the brokers statement match what you send it. Otherwise...the nasty letter will be in the mail.

>>I deal with lots of non-Americans<<

I get it that New York is a cosmopolitan place. I just don't understand why you bring up ethnicity so much in terms of tax preparation. I didn't see it as an issue even in the particular question of residency. Then you made a point of it in posts about cancellation of debt. Now surely ethnic background is irrelevant at least in a discussion of pricing?

Let's see:

NYC residency issue....client said if he were "of my ethnicity" I'd treat him better

Cancellation of debt issue....client said I should have treated him better because he is "of my ethnicity"

Pricing issue....so, how would you handle "the haggle"?

FYI-I just lost an "Albanian student" because she said my unbelievably low price was "too high for a student from Albania". Perhaps you could give me some pointers on how to make money...and at the same time let the potential client get "the rock bottom price".

And...this is why I bring up ethnicity.

Never mind...got the anwer

I've made calls to the Philly Dept of Revenue for what I think is an easy question...but, it's like I'm speaking some foreign language.

I have a client with a small home business....$10,000 net.

I was trying to fill out the 2012 BIRT-EZ.....

Net income portion....easy.....@ 6.45%

My question...is that all....or do I fill out the gross receipts portion for her also (let's just say $15,000 gross) @ .001415

According to the rep...this is all self-assessed...and if you don't fill it out....you don't get billed.

I gotta say...in 20 years of doing tax I never heard of anything so dumb.....nor did a ever feel so dumb when speaking to a rep

Anyone knowledgeable?

Choice of 2 options:

1. Casino

2. Jewelry shopping

Astoria is part of the boro of Queens, not a separate boro.

Anyway, yes, he needs a 360.1 for the part of the year he lived in Astoria. You only pay the city tax if you are a resident...and while you are a resident....not for the entire year if you move here.

Just as bad as cheapskates, are the clients that drop off/Pickup their stuff and then take up an hour or so of your time asking questions that have nothing to do with their current tax return.

Again....I do 99% of my work by e-mail.

At the end I always say "If you have any questions, please let me know."

How many times have I wished I never said that.

For things like..."where is my student loan interest deduction" it's simple....I attach a worksheet showing the phaseout.

But...there are other times when I feel like I'm writing a thesis. Once (recently) I go so annoyed I said "I'm not a tax teacher. If you need such "in depth explanations I think you should go to HRB and sit with the preparer and ask all your questions as he/she inputs your data". I'm sure she went, saw what she owed based on a 1st year tax preparer doing the return at probably more than twice my price....and came crawling back.

I deal with lots of non-Americans...who culturally "never accept the first price".

Once this guy starting "bargaining" and I reduced the price. He persisted...lower...lower...lower. I finally said "Hey, I'm a professional. This is not a bazaar! Would you ask you physician to lower his fee."

Keep in mind, every time you gain a new client, someone is losing an old client.

Sometimes people just want a fresh approach.

Good chances she'll be back next year....meanwhile, don't take it personally.

It came from Kristen F. Alpin.

But, based on this....I'd put in a request for a refund....to Zach at the e-mail address I posted.

I put in a dispute on 1/25 with my CC company. They gave me a credit, which is still there. TRX has until 4/28 to dispute it.

The AG's office printed out and sent me this e-mail:

I would like to resolve this complaint immediately. The compromise i have is offering her a full refund of the program that she paid for. However i do not agree with all the accusations that she has made against the company. If she would like a refund then i will provide one for her if shes is satisfactory with that.

Thank

Zach Benefield

Director of Customer Support for TRX

It comes from [email protected]

I often wonder what the tax prep process is like at the box stores? Do they also offer the compassionate listening ear? Or is it strictly mechanical and transactional?

I used to work in "an office". It wasn't an H&R Block etc...but perhaps 8 preparers. Unless a client specified "someone", the client sat with anyone. No...not as compassionate at all. Come in....sit down....go home. Cut & dry. I can only imagine what its' like at an H&R venue.

As self-employed...working out of my dining room....I get calls/e-mails all year about all kinds of issues. I probably get too involved....which is why I keep having these "problems with clients" and their expectations of me. (My venting threads......lol)

Why not just split the basis?

Now that we're into the "home stretch".......(and assuming everyone here is using other software by now).....if TRX (under any name) were to contact you....and offer you "free software" for next season....would you take them up? Would you even try the software?

And a marriage counselor too.

Oh...right.

The dreaded "couples return".....his side/her side.....waiting for them to work things out....sending the MFS worksheet to prove it's better to file jointly.

BTW...my friend the psychiatrist...."met" when they filed jointly....but I only dealt with him. Got friendly with her when she wanted the details of their finances/taxes during the divorce proceedings.

I do.

People's problems....

How people react to "owe vs refund"....

How people fear the IRS...

The Jan-Mid Feb. crowd....happy people...rarely need "my therapy"

The mid March-mid April crowd....my mantra..."you should be happy you owe $$$. It means you made a lot of money"

Only a fraction of what I do is "accounting". It's mostly "know your customer....know his expectations....be able to appease him if you know he won't like the result".....and expect to hear all about his problems.

A good friend of mine is a psychiatrist. She tells me I get all this because I'm a good listener. Oh..and she's also my customer; was a customer before becoming a friend. (Yes, I listen to her problems too.).

The client is actually a friend and I know her story to be true....thanks to her facebook posts over the past year, I ( and many others) knew pretty much every detail of her story before we sat down. Unfortunately, this means I will not be able to charge near what I would like to.

,

I have completed her 2012 return....pretty nice refund thanks to education credits for her daughter in college.....but I hesitate to actually file it for her until we clear up the 2011 issues.....otherwise, I'm assuming they will just hold her refund.

The problem is that in order to process her daughter's financial aid, the school is requesting 2012 transcripts. I hope the school will wait and, if so, it won't negatively affect her daughter's aid.

what would all of you smart people do?....file 2012 now or wait a few weeks and potentially longer (extension) until 2011 is resolved?

This smart person would "fill out" but not file until 2011 is resolved.

I just did one for someone whose husband didn't get his W-2 until mid March, but the school wanted the return by 3/1. I filled it out based on the last pay stub...she gave it to the school....and all was fine.

I don't think the "official IRS 2012 tax transcript" is available until August anyway.

JB,

NO 1040X! It takes to long to process to rectify the problem. IRS wants to clear their files as soon as possible just as your client does.

You can complete a Form 8889 for 2011 and attached it to the correspondence you send, along with proof from the 401(k) company in regard to the date the retirement was disbursed and also from the receiving trustee of the rollover if you don't see that information anywhere on the transcript when you get it. If the interest is hers, simply plug in the $50 to a dummy return you prepare for 2011 and tell IRS that she does agree with the additional $50 in income and the resulting difference that she owes IRS due to the additional interest.

Good luck!

Cathy

P.S. Don't forget to charge accordingly, especially this time of year!!!!!!

Wouldn't you need to attach the 8889 to a 1040-X? I'm not too sure the clerk would just "staple it" to a return already filed. Especially because it would change the numbers that the IRS has in the system for this return.

Letters/forms from both institutions they would accept and want. (personal experience speaking).

I still go with "have client make a call that paper work is coming"....and amend.

That's what I do. I've found that if they know it's being worked on they'll give you a new "date" before those letters start coming.

And send it regular mail. Anything with tracking etc slows down the process.

WHY do you care how the landlord reports it? what makes him right. You have to report it correctly and be prepared to defend a difference in reporting to the irs later on. If the landlord put it in box 7 subject to fica would you make your client pay fica just so you match what was sent to the irs?

Do your homework or pass the client on but this is not really an unusual stituation for rent controlled apartments. Then report is as your professional opinion justifies not how the landlords accountant decided.

She isn't rent controlled. Possibly stabilized. Probably just paying on a month to month basis.

Obviously if it reported in Box 7 I would tell her there is an error. I am assuming that the landlord's accountant will report it as it should be reported.

However, if it's reported, let's say in Box 3....I'm going to tell her she needs someone else to do the return, because I don't have any experience with this situation and I'm not going by what her lawyer says.

This is my husband's friend's wife's sisters friend....nothing more than an acquaintance to me....who I've been trying to drop for the past 3 years (because she's very aggressive...tax wise and personality wise). But she keeps insisting she wants me to do her return.

>>How can it be a capital gain if she never invested any of her capital.<<

No investment just means zero basis. Lots of capital assets have zero basis.

But she still doesn't own the apt.

You know, I'm not even positive she has a lease. This is an "apt" between two buildings. It was an alleyway...and the owner converted it to a unit without heat (which is illegal). Her bf lived there....she moved in...bf ultimately moved out. She stayed. She stayed because the rent was really low due to the fact that there was no heat. This was 15 years ago.

Oh...my rule is....I don't do anything that will get me in trouble. I don't do anything stupid. I don't do anything that I know will most likely cause future issues.

I'm not wiling to spend hours of my time trying to prove myself wrong

Yeah...read that one before too....another opinion that agrees with me.

There is no rationale that makes it "capital gain".

No investment = no gain

Let her lawyer do the return.

Thanks...just more opinions!

Nothing definitive

Well...this is a "next year" thing anyway. But, when she comes this year, I'll tell her I have to report it on her tax return based on the information sent into IRS. If she isn't happy with that she'll have to go elsewhere. And so...another PITA will have to pound the pavements of NYC to find someone who will write what she, the client wants and charge her a fee that will justify the possible consequences.